Silver Price Analysis – Silver Continues to See Buyers Chase Price

Silver Technical Analysis

Silver has rallied after initially gapping to the upside on Monday, as we continue to see this market just jump at the first hint of interest. The market, of course, is going to have to deal with the fact that it was Martin Luther King Jr. Day, and that does affect liquidity and volume, but if you watch my Gold analysis today, it’s the same thing here. It really doesn’t matter that it was a holiday; it’s just a continuation of everything that we had seen previously.

Short-term pullbacks should see a certain amount of support at the $90 level. The $90 level, which, of course, is a large, round, psychologically significant figure and an area that a lot of people will be watching. Even if we were to break down below there, I think you see a lot of support at $87, and again at $80. At this point, I just don’t see how the market doesn’t at least try to get to the $100 level.

Self-Fulfilling Prophecy

That is an area that we’ve been talking about for a while in the markets, and with that being the case, I think it’s a self-fulfilling prophecy. You don’t necessarily want to jump into the market with a huge position, but I do understand that market participants will want to chase FOMO.

I understand that is a huge problem, and with that being the case, you have to look for value on dips. You have to keep your position size reasonable because, remember, the leverage in Silver is pretty intense. That being said, there’s really only one direction to trade this market.

For a look at all of today’s economic events, check out our economic calendar.